tekin, bilgehan çankırı karatekin üniversitesi - iibf - işletme bölümü, Turkey , yener, erol çankırı karatekin üniversitesi - iibf - işletme bölümü, turkey

Comparative Analysis of Causality and Cointegration Relations Between Stock Market and Economic Growth in G7 and BRICS Countries and Turkey

36509

The economic growth in a country is generally measured by a change in the Gross Domestic Product (GDP). The increase in GDP will also increase per capita national income and personal savings. The increase in the national income will also increase individuals available income, their savings and the share of their savings on investments. Hence, GDP is one of the most important indicators considered by investors. In this study, it was attempted to test the relationship between these two variables and the findings of previous studies. For this purpose, the relationships between GDPs and stock markets of the BRICS and G7 countries from the 1^st quarter of 1998 to 4^th quarter of 2016 were examined. The Johansen cointegration test and the Granger Causality test were used to determine the existence of a relationship. As a result of the analyzes made, one-way relations from stock indices to GDP were found. At the same time, the series are moving together in the long run. Therefore, the increase in stock prices is accompanied by economic growth.

535

Economic Growth , GDP , Stock Market , Granger Causality Test , Johansen Cointegration Test

Journal Of Economics an‎d Administrative Sciences

559